Rules cannot substitute for character - Director of Insurance Supervision, Sylvia Cronin at Life Conference 2015

• Culture begins in the Boardroom. Responsibility lies with Board members.
• Financial institutions can restore confidence through our people ‘doing the right thing’.

Read full speech.

The Central Bank of Ireland’s Director of Insurance Supervision, Sylvia Cronin said that, in the past financial institutions focused on controls and governance structures, rather than culture and people relationships.

“The financial crisis and more recent scandals have caused a reassessment of the role that culture plays in financial failures. The corporate scandals of recent years have clearly shown that behaviours trump rules every time and legislation cannot eliminate the unsavoury side of human behaviour. Rules cannot substitute for character.”

Speaking at the 30th Life Conference of the Institute and Faculty of Actuaries, Sylvia said that an organisation can have the world’s best governance in terms of structure and documentation, yet the Board and the organisation’s culture can be dysfunctional in how it operates.

“Actually doing the right thing, identifying core consumer needs and delivering better quality consumer outcomes will drive a different relationship with the consumer and deliver a more sustainable level of return to the shareholder. This will require driving a much more customer-centric model, which will include, in many cases, a change in approach to culture,” she said.

"To be successful in today’s world, minimum compliance with regulatory requirements will not be enough to prosper. Relying on the regulator to be the conscience for industry will not be enough to ensure you have a sustainable business.”